The full-scale launch of the Bakkt platform daily and monthly delivery Bitcoin futures trading from the Intercontinental Exchange Corporation (ICE) will be held on September 23. According to Kelly Loeffler, CEO of Bakkt, the United States Derivatives Exchange Commission (CFTC) “gave the green light to contracts” through a self-certification process.
At the same time, Bakkt Trust Company LLC received a trust license from the New York State Financial Services Authority (NYDFS), which will allow it to store institutional clients' bitcoins that will be insured for $ 125 million.
We have some news https://t.co/ykUvQ31cGz
– Bakkt (@Bakkt) August 16, 2019
Note that futures must be listed on ICE Futures US, and clearing will be provided by ICE Clear US. At the same time, the contracts will be secured by a guarantee fund, in which $ 35 million has already been invested.
#ICYMI : Superintendent @LindaLacewell announces #NYDFS grants charter to virtual currency trust company, read more here: https://t.co/r0V9z7JtNl . pic.twitter.com/l6koEmsoUQ
– NYDFS (@NYDFS) August 16, 2019
Bakkt intends to solve the problem of low liquidity, quality of services, operational risks, reliability and fees in order to enable institutions to interact with bitcoin, Loffler emphasized.
In addition, margin tools will be available for daily contracts. The size of leverage is still unknown.
It is noteworthy that Bakkt will not rely on the price of bitcoin in spot markets to calculate futures, since they can be “manipulated”, but the details of its own pricing mechanism have not been disclosed. Some community representatives were surprised at this decision, as a number of spot markets demonstrate fairly high liquidity.
“Bakkt bitcoin futures contracts will not rely upon unregulated spot markets for settlement prices”
Anybody know whats their price mechanism? Unregulated exchanges like Binance and Bitfinex clearly have the best liquidity … (harder to be “manipulated”) pic.twitter.com/S8zTnDjy2K
– Dovey Wan ? ? (@DoveyWan) August 16, 2019
Recall that earlier the Bitcoin derivatives exchange LedgerX announced that it had received CFTC permission to launch deliverable futures for the first cryptocurrency, but then the agency denied this information.
Testing of Bitcoin futures on Bakkt began on July 22. More about contracts on the platform can be found in this article .
Publication date 08/17/2019
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